Sixty-four per cent of executive CAs expressed optimism about the Canadian economy in the first quarter of 2011, marking a notable increase of 23 per cent over the previous quarter, according to the latest CICA/RBC Business Monitor.

Canadian interest rates and consumer confidence were the top two reasons cited among respondents for the surge in optimism to near record levels associated with the CICA/RBC Business Monitor. In addition, 66 per cent of respondents in the first quarter survey were optimistic about their company’s prospects over the next year, up 10 per cent from the previous quarter.

The good news for job seekers is that almost half (47 per cent) of respondents expect employment numbers to climb at their company over the next 12 months and 22 per cent are projecting increases of five per cent or more. Only 12 per cent of respondents anticipate that the number of employees in their company will drop, with most of the remaining respondents believing company employment numbers will remain unchanged.

“The employment prospects must be welcome news for the latest crop of university and college graduates looking to enter the workforce,” says Kevin Dancey, FCA, President and CEO, CICA.  “One positive set of findings does not make a trend, but the results are encouraging especially since executive CAs are feeling good about both the Canadian economy and their respective companies.”

The survey also found that companies are investing in innovation and the executive CAs expect to see increases in revenue and profits over the next year.
Innovation: Three-quarters (75 per cent) of those surveyed indicated that their company has made changes to ensure that it performs well during periods of slow economic growth. Two-thirds say their company will make a significant investment in innovation over the next 12 months.

Revenue: Seventy-three per cent of executive CAs expected their company’s revenues to increase in the next 12 months. This includes 24 per cent projecting revenue increases of 10 per cent or more.

Profit: Roughly seven in 10 (69 per cent) executive CAs indicated that their company’s profits will increase in the next 12 months, with 25 per cent projecting a profit increase of 10 per cent or more.

“These latest results reinforce the fact that Canadian companies are ready to seize opportunities for future growth and investments,” says Christianne Paris, Vice-President, Business and Client Strategy, RBC. “The focus on investment in innovation is particularly promising, as this can be a key driver for opportunities in new markets.”

The CICA/RBC Business Monitor is issued quarterly, based on a survey commissioned by the CICA. The report draws upon business insights of CAs in leadership positions in privately and publicly held companies across Canada. Economic optimism peaked at 67 per cent in the second quarter of 2007, but dipped to a low of two per cent in the fourth quarter of 2008.

For the Q1 2011 study, emailed surveys were completed by 351 CAs of 3,992 identified by the CICA as holding senior positions (CFOs, CEOs and COOs). The response rate was nine per cent, with a margin of error associated with this type of study at ± 5.2 per cent, with a confidence level of 95 per cent. The survey was conducted by Harris/Decima from March 1 to March 24. 

A background document is available online at: www.cicarbcbusinessmonitor.com